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Publikācija: Assessment of Impact of Corporate Income Tax Suspension on Financial Performance of Businesses

Publication Type Publication (anonimusly reviewed) in a journal with an international editorial board indexed in other databases
Funding for basic activity State funding for education
Defending: ,
Publication language English (en)
Title in original language Assessment of Impact of Corporate Income Tax Suspension on Financial Performance of Businesses
Field of research 5. Social sciences
Sub-field of research 5.2 Economics and Business
Authors Valentīna Bizņa
Māris Jurušs
Tālis Laizāns
Roberts Šnikvalds
Keywords profit, corporate income tax, equity, financial performance, economic development
Abstract Though there are a number of data and studies about the impact of tax incentives on investment, research and development, no detailed and systematic analysis has been elaborated on the effectiveness of taxation of profit to the financial performance of businesses in general. Businesses avoid corporate income tax to get more net profit. Evasion leads to economic stagnation. It is time to call for changes of the corporate income tax system and introduce tax suspension – tax only shared profit. The aim of the research is to assess the impact of corporate income tax suspension on retained corporate income. The research extends applicable theoretical foundation and comprehension of elements and factors affecting firms’ behaviour. The results show that the corporate income tax reform would change capital structure of businesses and improve company’s sustainability. The findings also give grounds for the development of an applicable model that would help government authorities choose the most effective way of taxation of corporate income.
DOI: 10.2478/eb-2018-0014
Hyperlink: https://www.degruyter.com/view/j/eb 
Reference Bizņa, V., Jurušs, M., Laizāns, T., Šnikvalds, R. Assessment of Impact of Corporate Income Tax Suspension on Financial Performance of Businesses. Economics and Business, 2018, 32, pp.172-181. ISSN 2256-0386. e-ISSN 2256-0394. Available from: doi:10.2478/eb-2018-0014
ID 28068